Will Europe & Korea put pressure on Wall Street?

Wall Street is bracing for European debt crisis to boil over & Korean peninsula to light another fire......

I personally believe that Wall Street last week showed tremendous resiliency even in thin trading.....

Wall Street lost about 1% for the week when faced with news from China,Europe & Korea.....that is saying a lot about the strength of this market.....

Retail sales picture will play a larger role in how we trade next week......

Even when we are facing slight downward pressure in market, many strong stocks are making new highs.....

As this IS a strong bull market,buying strong stocks on down days are proving to be a smart move.....so any weakness should be bought.

IF we look @ S&P 500 i expect it to find strong support in 1170 area..RSI @ 49.90 is quite compelling.S&P 500 closed @ 1189.40

Retail traders have remained negative on the market & has pulled cash out for 28 straight week..latest week they pulled $2.8 billion in cash......it is hard to interpret why retail are so negative for 7 months while markets have gone straight UP from May low of 1010.91.Retail are a real contrary indicator...???

Hedge funds have been marking time also & MAY jump in when they feel markets is not going lower...could be a very strong finish to end of the year...i am expecting new highs in S&P 500 & Dow by end of December......

IF you are trying to analyze this market & draw a comparable...look to 1998 to 2000 chart of Nasdaq when Nasdaq went from 1500 to 5000 area in a span of two years......no markets are identical but can give you some idea.......

Technology stocks are making all time highs on a daily basis & should continue to do so......

SO..either you can worry all about Europe & Korea or use any weakness to position in better stocks.......

December will be a very strong month on a historical basis.

Ensure that your portfolio is positioned for strong gains.....

Good luck with your OWN strategy & homework.

BLOG does NOT give buy or sell.

Saleem